The situation in the oil market remains bleak. There was supposed to be a conference call between chief OPEC+ members, and even Russia agreed to it, but Saudi Arabia, the de facto leader of OPEC, declined to participate. Right now the likelihood of oil-exporting countries reaching an agreement to contain the drop of prices is extremely low, so expect oil to continue decreasing in value.
The World Health Organization officially changed the status of the coronavirus outbreak for an “epidemic” to a “pandemic,” to properly reflect its quick spread around the globe. The categorization of pandemic in no way suggests that the disease has gotten more serious or more deadly; it simply means that it spreads too fast in too many places, affecting the whole world.
Covid-19 cases continue to increase in the United States. The government announced an extension to the tax deadline and an additional loan to support small businesses in this difficult period. Despite there being over 700 domestic cases in the United States, Trump imposed a 30-day travel ban on Europe, to prevent foreign passengers from bringing in the virus. It is not clear why the English-speaking Ireland and United Kingdom were exempt from the travel ban, considering both countries have registered cases of the coronavirus.
The situation in Europe remains dire, with strict lockdowns in Italy and Denmark. Many other countries, despite not having as many cases, are also cancelling theater and cinema events, sports games, and keeping students away from schools and universities.
Based on the latest developments with the virus, as well as Trump’s travel ban (which will likely affect the already hard-hit airline and tourism sectors), the stock markets suffered another heavy blow today. All major indices around the globe are undergoing losses.
Last but not least, today the European Central Bank will discuss adjusting the rates within the eurozone to battle the coronavirus damage, but changes are not expected this week.
